The Treasury Department and Internal Revenue Service on Oct. 14 announced proposed regulations to restrict eligibility for the Premium Tax Credit, a refundable tax credit that helps Americans afford health insurance purchased through the Health Insurance Exchanges.
Beginning in 2027, the proposed rules would limit the credit to U.S. citizens, U.S. nationals, and certain lawfully present noncitizens. The regulations also would strengthen eligibility verification checks and close gaps in the verification process, according to the agencies.
"The proposed rules protect eligible taxpayers while strengthening the integrity of the Premium Tax Credit," said Frank J. Bisignano, the IRS chief executive officer. "The enhanced verification measures are designed to curb improper claims, ensuring these vital tax benefits go strictly to the hardworking Americans who qualify for them."
The announcement follows recent action by the Centers for Medicare & Medicaid Services, which removed more than 760,000 unverified enrollees from the Affordable Care Act rolls, resulting in $2.2 billion in savings. Nearly 1 million Americans received $500 each following the removals.